National Association for the Self-Employed – Business Benefits, Educational Resources and Access to Health Insurance for Small Businesses and Startups

Respondents: 156

More and more self-employed business owners are working out of their home. According to the U.S. Small Business Administration, home-based businesses represent 52 percent of all firms. One tax benefit that home-based businesses are able to make use of is the home office deduction. However, many home-based business owners do not employ this deduction. Tell us if you take advantage of this benefit and your opinion on options to make it easier for all home-based businesses to take the home office deduction.

1. Do you currently utilize a home office for your business?

94% Yes

06% No

0% No Opinion

2. If you do have a home office, when filing your taxes do you currently take the home office deduction by filing IRS Form 8829?

27% Yes

58% No

14% Do Not Know

3. If you have not utilized the home office deduction, please indicate the top reason why you have not claimed this deduction?

03% Form and instructions too complex

10% Criteria required to qualify for the deduction too rigid

21% Concerned that you may get audited by the IRS if you utilized the deduction

04% Paperwork required is too burdensome and time consuming

13% Did not know about the home office deduction

11% Did not qualify for the deduction

38% No opinion

4. If you have not utilized the home office deduction, would the option of taking a standard home office deduction rather than itemizing encourage you to take the deduction?

60% Yes

12% No

28% Do Not Know

5. Below are possible amounts for a standard home office deduction. Please indicate for each whether you would take the standard deduction if offered this amount or itemize.

Standard Deduction Itemize

1. $500 standard deduction 39% 61%

2. $750 standard deduction 39% 61%

3. $1,000 standard deduction 46% 54%

4. $1,250 standard deduction 50% 50%

5. $1,500 standard deduction 58% 42%

6. $2,000 standard deduction 64% 36%

7. $2,500 standard deduction 74% 26%

6. Please indicate whether you are in favor of or oppose the following proposals that have been suggested regarding the home office deduction.

Favor Oppose No Opinion

1. Simplifying and making less stringent the criteria for qualifying for the home office deduction. 95% 01% 04%

2. Should the option of a standard home office deduction become available there would be a requirement that those taxpayers who elect the standard deduction must always utilize this method on your taxes and will not be able to itemize at a later date. 16% 69% 16%

3. Should the option of a standard home office deduction become available there would be a requirement that those taxpayers who elect the standard deduction must always utilize this method on your taxes except if you relocate your office to another home at which time you must elect the method (standard or itemizing) you will utilize for that new home office. 28% 48% 23%

Survey Results

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